Moody’s assigns American Airlines loans Ba2

Moody's Investors Service said it assigned a Ba2 (LGD2) rating to the $1.15 billion of new credit facilities ($750 million term loan, $400 revolver) that American Airlines, Inc. plans to arrange.

American Airlines’ parent, American Airlines Group, Inc., US Airways Group, Inc. and US Airways, Inc. will guarantee the payment obligations under the new facilities on a joint and several basis.

The company also announced a planned $400 million increase in the committed amount of its existing $1 billion revolving credit facility secured by certain route authorities, landing and takeoff slots and gate leaseholds used in its South American franchise.

Moody's also assigned a Ba2 (LGD2) rating to this upsized facility.

American Airlines Group’s corporate family rating is B1 with a stable outlook.

Proceeds from the new term loan will be used for general corporate purposes.

Moody’s said the Ba2 rating has been assigned pursuant to Moody's Loss Given Default rating methodology and is level with the Ba2 rating assigned to American Airlines’ and US Airways, Inc.'s existing rated senior secured credit facilities.

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